BOJ to continue raising rates with eye on inflation risk, deputy governor says

TOKYO - Bank of Japan Deputy Governor Ryozo Himino said on Friday the central bank will continue to raise interest rates with an eye on the risk of underlying inflation overshooting its 2% target.

"There is a risk underlying inflation may deviate upward from our target," Himino told parliament while explaining why the BOJ decided to raise its policy rate to 1% on Tuesday.

When asked about the weak yen, Himino said the BOJ was closely watching currency moves as among key factors affecting the economy and inflation.

(Reporting by Leika Kihara; Editing by Himani Sarkar)

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This story was originally published June 18, 2026 at 5:25 PM.